Cape bank expands into residential mortgage market

Bank of Cape Cod says the market has stabilized and company is ready to expand offerings.

By SEAN TEEHAN

capecodtimes.com

By SEAN TEEHAN

Posted Feb. 22, 2013 at 2:00 AM

By SEAN TEEHAN

Posted Feb. 22, 2013 at 2:00 AM

» Social News

HYANNIS — Almost seven years after opening, the Bank of Cape Cod is branching out into residential lending, with plans to begin offering home mortgages by springtime.

The bank, which claims about $200 million in assets and employs 32 people across its locations in Hyannis, Osterville and Falmouth, announced earlier this month the hiring of Dante DiMassa, who will head up residential lending.

"We've been talking about it for several years," said Timothy Telman, the bank's president and chief executive. At the moment, Bank of Cape Cod only offers commercial loans, he said.

The bank will likely dedicate between $60 million and $100 million to residential loans in its first year offering them.

The move comes after several years of research, Telman said. As the market bounces back from the perils of the 2008 collapse, the timing seems right to move into residential loans, he said.

"The commercial market has been holding its own for several years, but the residential market continued to decline," Telman said. "(But) the market confidence is at an all-time high now, as opposed to five years ago."

A smaller, local approach to mortgages — as opposed to that of larger providers — may prove useful to homebuyers navigating the nuances of Cape Cod real estate, which include seasonal homes as well as cottages and guest houses unique to the region, DiMassa said.

"I've had community and large banking experience," DiMassa said. "What I found is the large (providers) were not able to meet the needs of the community."

The bank's small size also enables them to go through the process at a faster pace than larger lenders, said Mark Skala, a bank spokesman. Its base on the Cape also gives the bank local accountability to its customers, he said.

After growing by about 25 percent last year, Telman expects that offering residential mortgages — as well as the expected opening of a new Hyannis branch by the end of the year — will contribute to another year of 25 percent growth this year.

"We see this as an extension to help (our) customers," Tellman said. "This is a natural progression."